April 6, 2011 ATTENTION Advanced Investors and Finance Professionals:
If you are reading this you should download ValuEngine Institutional Software to see how VE’s powerful quantitative tools can increase your productivity and effectiveness. | Seeking Alpha Readers should check out our Seeking Alpha VE Investment App HERE. 
VALUATION WATCH: Our models find that overvaluation is approaching critical levels. Overvaluedstocks now make up 62% of our universe and almost 29% of the universe is calculated to be overvalued by 20% or more. All Sectors are calculated to be overvalued. Paper Chase
German Paper Maker Mercer International (MERC,$MERC) Helps ValuEngine Long Portfolio Double the SP500 since Re-Balance
Mercer International Inc (MERC). owns and operates a diverse pulp and paper business in the southern German states of
Saxony and Thuringia, in the former East Germany. The Company operates it's pulp business primarily through its subsidiaries, Spezialpapierfabrik Blankenstein GmbH and Zellstof-und Papierfabrik Rosenthal GmbH & Co. KG , and conducts its paper business through another subsidiary, Dresden Papier GmbH. Mercer International Inc. was selected as the Basic Materials Sector pick for our ValuEngine Forecast Model Market Neutral Portfolio Newsletter on March 17th. Since that recent re-balance, the stock is up @20% and currently sits in fourth place among the 32 equities in this month's portfolio. Our longs are led by GSI Commerce (GSIC)--which is up more than 56% pending an acquisition by Ebay, and Mercer International Inc. is neck and neck with other big gainers Revlon (REV) and Manitowac (MTW). AS of today, our long-side is doubling the return of the SP 500 since the re-balance Please Click Here for more on the VE Forecast 16 MNS Portfolio Newsletter. ValuEngine has issued a BUY recommendation for Mercer International Inc. on Apr. 06, 2011. Based on the information we have gathered and our resulting research, we feel that Mercer International Inc. has the probability to OUTPERFORM average market performance for the next year. The company exhibits ATTRACTIVE momentum, P/E ratio and price/sales ratio. Based on available data as of Apr. 06, 2011, we believe that MERC should be trading at $12.19. This makes MERC 22.09% overvalued. Fair Value indicates what we believe the stock should be trading at today if the stock market were perfectly efficient and everything traded at its true worth. For MERC, we base this on actual earnings per share (EPS) for the previous four quarters of $2.90, forecasted EPS for the next four quarters of $2.00, and correlations to the 30- year Treasury bond yield of 4.51%. Subscribers can check out the latest figures on Mercer International Inc. from our models HERE.
Market Indices Data | | Latest | Change | YTD | Dow Jones | 12,408.50 | 14.57
| 7.18% | NASDAQ Composite | 2,791.63 | 0.44
| 5.23% | Russell 2000 | 852.17 | -1.14
| 8.74% | S&P 500 | 1,332.71 | 0.08
| 5.97% | ValuEngine Market Overview Summary of VE Stock Universe | Stocks Undervalued | 37.51% | Stocks Overvalued | 62.49% | Stocks Undervalued by 20% | 15.76% | Stocks Overvalued by 20% | 28.81% | ValuEngine Sector Overview | Sector | Change | MTD | YTD | Valuation | Last 12-MReturn | P/E Ratio | | Oils-Energy | -0.22% | -0.09% | 13.27% | 23.85% overvalued | 42.19% | 49.07 | | Multi-Sector Conglomerates | -0.39% | 0.17% | 5.41% | 16.58% overvalued | 26.66% | 30.33 | | Transportation | -0.69% | -0.17% | 1.48% | 14.66% overvalued | 20.69% | 22.13 | | Basic Materials | 1.77% | 2.82% | 3.89% | 14.08% overvalued | 52.69% | 26.17 | | Industrial Products | 0.24% | 0.53% | 8.37% | 11.96% overvalued | 26.80% | 30.86 | | Utilities | -0.12% | 0.23% | 5.14% | 11.40% overvalued | 16.28% | 21.75 | | Aerospace | -0.15% | -0.08% | 16.25% | 11.30% overvalued | 21.86% | 19.87 | | Business Services | -0.10% | -0.01% | 5.74% | 10.48% overvalued | 15.06% | 51.66 | | Consumer Staples | -0.29% | 0.12% | 0.17% | 9.57% overvalued | 14.80% | 19.16 | | Construction | 0.22% | 0.03% | 2.63% | 9.49% overvalued | 9.74% | 35.29 | | Auto-Tires-Trucks | -0.38% | -0.23% | -2.19% | 8.92% overvalued | 36.32% | 20.88 | | Computer and Technology | 0.33% | 0.55% | 12.73% | 8.13% overvalued | 30.12% | 45.83 | | Finance | -0.12% | 0.02% | 3.69% | 7.95% overvalued | 8.25% | 26.08 | | Retail-Wholesale | 0.66% | 0.76% | 6.25% | 7.46% overvalued | 18.66% | 29.24 | | Consumer Discretionary | 0.35% | 0.66% | 6.06% | 5.46% overvalued | 16.01% | 33.17 | | Medical | 0.18% | 0.69% | 13.33% | 3.11% overvalued | 14.07% | 38.16 | Seeking Alpha Readers should check out our Seeking Alpha VE Investment App HERE 
| 
